The company will first focus on building up the quality of its service, instead of on expansion, Wang said, adding that Sanyou plans to launch two more Tomod’s outlets in the Greater Taipei area in the first half of next year.

Wang did not specify the sales target he had set for the first Tomod’s store.

However, Mercuries Group adviser George Wong (翁肇喜) said he expects Tomod’s to become one of Taiwan’s major cosmeceutical retail chains, competing with the established heavyweights Watsons (屈臣氏) and Cosmed (康是美) in the long-term.

Mercuries posted NT$1.72 billion, or NT$2.89 in earnings pershare, in consolidated net profit in the first three quarters of the year, up from NT$1.44 billion, or NT$2.43 per share, a year earlier.

Following the increasing number of players in the market, Watsons — Taiwan’s largest cosmetics and drugstore operator — said it has been shifting its focus to selling snacks and beverages to attract more customers.

The company, which has more than 440 outlets, said revenue has been showing double-digit growth for the past few months.

Smaller player Cosmed, owned by President Drugstore Business Corp (統一生活事業), said the total number of its stores may total close to 400 by the end of the year.

However, sluggish economic sentiment has dragged down Cosmed’s profitability in the first three quarters, with net profit during the period sliding 38.22 percent from a year earlier to NT$153 million, company statistics showed.